The Nigerian Education Loan Fund (NELFUND) has commenced the disbursement of long-overdue upkeep allowances to a total of 11,685 students who were not paid during the 2024/2025 academic year. The Fund's Managing Director, Akintunde Sawyerr, made this announcement at a press briefing held in Abuja on Tuesday, January 13, 2026.
Reconciliation Uncovers ₦927 Million Shortfall
According to Sawyerr, the backlog of payments, valued at ₦927 million, was identified during a standard reconciliation process focused on student upkeep disbursements. He attributed the initial payment failures to a combination of technical and operational challenges that disrupted the processing system.
These issues included temporary network failures, transactions that did not go through successfully, and instances where provided bank account details could not be verified at the crucial moment of payment.
Focused Resolution for Affected Students
In response to the discovery, NELFUND management authorized a special, one-time reconciliation exercise to clear all outstanding cases. This directive aligns with the President's emphasis on accountability and efficiency within public institutions.
The resolution strategy involves several key steps:
- Direct communication with the impacted students.
- A specified grace period for students to update or submit alternative bank account information.
- A rigorous, multi-layer validation process involving IT, client support, audit, and finance departments.
- Immediate payment upon successful completion of validation.
"Our objective is straightforward," Sawyerr stated. "Every eligible student must receive what is due to them, accurately, transparently and without delay."
Broadening the Scheme's Reach and Impact
The Managing Director also provided an update on the overall performance of the Federal Government's student loan initiative. To date, 864,798 students have benefited from the scheme, with total disbursements hitting ₦161.97 billion.
A detailed breakdown shows that ₦89.94 billion was paid directly to 263 tertiary institutions to cover tuition and other fees. Meanwhile, ₦72 billion was disbursed directly to students as upkeep allowances.
Looking ahead, Sawyerr revealed plans to significantly widen the scheme's engagement. NELFUND intends to launch a new outreach phase targeting parents, guardians, and traditional institutions nationwide.
This grassroots campaign will involve direct interactions with traditional rulers, community leaders, parents, and faith-based organizations. The goal is to enhance awareness, build trust in the loan process, and empower families to support their children's pursuit of higher education.
"We will take our sensitisation campaigns to churches, mosques, motor parks and other community spaces nationwide," he explained, emphasizing the drive to broaden participation.
Update on 2025/2026 Academic Session
Adding to the update, the Executive Director of Operations, Mustapha Iyal, disclosed that 325 tertiary institutions have been onboarded for the 2025/2026 session, with a pool of 3.7 million eligible students.
So far, 283,275 applications for the current session have been successfully verified, while 13,026 applications were rejected during the screening process.
